Auditor: FY24 draft audit near complete; district to request brief extension

RSM, the district’s external auditor, presented a draft of Oklahoma City Public Schools’ fiscal year 2024 financial statement and single audit, telling the board the work is close but not finalized and that the district will request a short extension from the State Department of Education.

Tino Robledo, RSM’s engagement leader, said the auditors provided a preliminary draft of the financials but must complete required quality reviews before finalizing the report. “We’re getting close, but we’re not there yet,” Robledo told the board, and he described two areas likely to generate matters for reporting related to IT controls and classification of financial presentation.

Robledo explained the federal single‑audit rules that apply to districts receiving more than $750,000 in federal funds and said RSM’s testing of the district’s federal programs is prescriptive. He warned that a finding rising to a material weakness would increase federal audit testing (for example raising the audited programs from roughly 20% of funds to 40% of funds audited) and would be reported to federal grantors.

General counsel Tony Childers and CFO Sydney Ward provided context about the state and federal audit deadlines. Childers reminded the board that Oklahoma law requires districts to have audits completed within nine months of the fiscal year end (the fiscal year runs July 1–June 30); Ward said the district’s FY24 federal expenditures subject to single‑audit testing were about $93 million. Ward also gave high‑level financial context: the district’s net position typically ranges roughly $458 million to $520 million, the general fund balance has ranged approximately $28 million to $40 million in recent years, and the district’s TRS pension liability was described as roughly $250–300 million.

Board members asked about risks, historical issues, and consequences. Robledo noted that the severity of any control finding (control deficiency, significant deficiency, or material weakness) determines whether it becomes part of the formal written report and whether federal grantors see it. He added that the audit completion timeline was lengthened by required internal quality reviews and by required procedures such as actuarial reviews for pension valuations.

CFO Ward said the district will submit a letter asking the State Department of Education for a 45‑day extension but expects to finish well before that window. Childers confirmed staff drafted a letter for Superintendent Polk to transmit to the state.

Why it matters: the audit documents the district’s compliance with financial and federal funding rules, informs oversight decisions and can trigger additional federal testing or reporting requirements if significant deficiencies or material weaknesses are identified.

Next steps: auditors will finish quality reviews and provide a final report; district staff will file a formal extension request to the State Department of Education and present the finalized audit to the board when completed.